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Tuesday, June 10, 2014

Factor decisions that propels me to accept the new job

There are many reasons that can play a part on whether an employee should stay with the company or move on to his or her next role in another company. Based on Davenport, having the right career is important as we tend to spend at least one-third of our entire lives in the workforce (precisely why I guess I'm seeking financial freedom?). In his book, he mentions that the right career is a positive, productive and natural extension to your value system and your natural talents.

Readers of my blog would probably know that I was recently contemplating a move for a new role in one of the REITS industry which I was offered. There were intially some terms in the contract which I was not very comfortable at the beginning but after a few rounds of negotiation, we managed to come up to reach a consensus. Bottomline - I decided to take up the role.

Just like many others, I weighed in both the advantages and disadvantages when considering the option both qualitatively and quantitatively. I used a few metrics which I thought was crucial to me at the point of consideration - Salary, Learning, Career Growth, Change and Bosses.

1.) Salary

At this stage of my career, the salary factor still plays an important factor in my consideration for a change as I continue to need them to fund my family's increasing expenses. The fact that I have yet to attain a financial freedom status means that the money could also be used to fund my portfolio or anything else for that matters.

The new job offered was a 10% increase to what I currently earned at my current company. That looks like a good start.

2.) Learning

There were probably little learning curve I had left with my current role in my current company. To be fair, this was a typical scope an accountant would face in any company - reporting, closing, accruals, budgeting, forecasting...repeat.repeat.repeat. So I wouldn't point finger on anything on anyone for this.

The new job can perhaps offered a different set of learning something new at this point. Being a Reits investor myself, it will be interesting to learn about the "inside" of how a Reits company actually operates and how the management makes certain decision. Also, since the company is listed in Singapore, there will be regulations that the company had to comply. These will all be new things for me.

3.) Career Growth

To be fair, this is the part that I struggled most with when making the consideration.

If I look over the horizon of 5-10 years, I feel it would be more beneficial for me to stay put and slogged for that 5 to 10 years horizon. The progression by then would be immensely critical. On the other hand, Reits is more of a niche industry and they are set up such that their structure within a team is small and simple. Remember, the bigger the team is, the higher the overhead and this leads to a lower DPU for the unitholders (Ouch!!!). That leaves room for upward progression really scarce.

However, if I were to think of just working for the next 6 years (until I'm 35 as planned), then I guess it doesn't really matter to climb the top. I would have reached my version of "peak" one day.

4.) Change/Environment

The working hours (9 to 5.30 Mon to Thurs and 9-5 for Fri) and environment in my current company are good. For one, I can leave mostly on time.

I would be the first to admit that "Change" is uncomfortable for the most part of the first few months almost for everyone. New role, new friends, new seats, new lunch partners, etc can be a detering experience for some but one which we had to deal with.

5.) Bosses

Last but not least, how bosses treat their employees will be an important aspect of employee happiness in a company.

At my current company, the bosses are good to me and for the past 2 years they have been my lunch partners so I guess I can fit with them.

I won't say about the new bosses but hopefully they will not be hard to deal with either.

There has been many moments like this when we say perhaps let's wait another year to see the situation how things are progressing before making the dive and I guess we are all guilty of that (I blogged about ways to overcome the "One More..." syndrome recently). Since life is short, I think we should try not to overthink and let the heart runs its course. After all, with these 2 choices, how bad can it goes even if things go wrong?

Have you experienced of such situation where you have thought very hard about choices and finally came up to a decision? How do you feel?

I think what you want in your career is very important, include passion. If it's due to 10% increament and give up your work life balance is not worth it. It easy to earn that extra 10% thru moonlighting n using your free time to explore starting a biz. This will you more satisfaction n secure future if you succeed. My 2 cents.

Working overseas is a big step towards a totally different environment different language different culture. Its a huge leap of faith that you need to adapt in the new environment, probably take longer than simply changing role to another company. Definitely one for consideration in the future years if I want to try working overseas ;)

You now can see how REITs work from the inside out - how's that for an edge?

Especially on corporate finance - when it makes more sense to take on more debt, when to ask shareholders for more money via rights issue, and when it's better to bring in new investors through a share placement ;)

That's experience first hand from the front and the view from the operations itself. I am excited.

Will it help in my decision to purchase stocks in the future, hmm it might. I just hope unitholders dont blame me when the stock is not performing well. Ive never owned the counter myself. Same company different motive between unitholders and employee ;)

Congrats on your new job and the pay increase. What you said i totally can understand and feel it. I'll most probably be changing jobs soon to a totally new industry as what i studied in university is different from what i'm working as now. The procrastination is real and especially when i've been working in the same company for almost 4 years now plus the good colleagues, bosses and working environment, changing is like a stupid choice. But then again, if i do not change, i probably will be stagnant and not grow in my career. My only hope is that i will move on to a greater place where i can not only learn more but also have the good working environment and colleagues.

Do you want to replace my current role?? Hahaha it seems that I've never really asked you about what you studied or majored. Maybe if its suitable I can recommend it to you. The company I am working at has pretty good benefits :) But then again you will ask if its that good why I want to leave right.

Hi B, Congrats on your new career. A career move mimicked an investment. You could not possibly anticipate all future outcomes. What is most important is you stick with your plan and execute it. If things goes wrong later, it is better to happen earlier in your career life and you learn from it earlier when you still can afford. I see you had done lot of research and will definitely benefit from it, just like your stocks investments.! All the best.